Maximizing Your Minimum
It isn’t often you get much encouragement to give the minimum in anything. When I was younger, I never heard a coach tell me to do the minimum. Nor can I remember any pastor preach about doing the minimum. However, there is at least one important time when giving the minimum is a very good thing. Not only should you not feel guilty about it—I am actually encouraging it.
Of course, I am talking about your retirement account’s Required Minimum Distribution (RMD). Many of us with retirement accounts, once we hit our 70s, are required to receive a minimum amount from our retirement plan (401k, 403b, or IRAs). No doubt there are many in your congregation who receive this disbursement every year.
One of the excellent ways to give money is to roll all, or a portion, of our RMD directly from our retirement account to our church. In this way, you can give money you might already have planned to give, but the amount may be non-taxable. Not only can you give your annual pledge that way, but if your church has special needs from time to time, you can use your RMD to help with that. What a blessing to give a gift without claiming it as “income” for tax purposes. That is what I call maximizing your minimum.
The key to this kind of gift is that the giver never receives the money directly. If you receive the distribution, then write a check to the church, you will pay taxes. Only by rolling it over directly will you escape tax consequences.
As we approach another challenging year, it may be that folks in your congregation will be considering what to do with their RMD. Be sure to let folks know that they have this option of giving to their church.
So, go ahead. Don’t feel bad. Even God smiles when you give this minimum.
Glenn Howell, Director of Development
Heartland Methodist Foundation
If you have any questions about giving from your retirement plans, please contact Julie Tillman jtillman@fishersumc.org or Greg Arnott garnott1958@mac.com.
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